Zebra: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Nov. 3, 2026, Zebra (NASDAQ:ZBRA) announced full-year revenue growth guidance of 17% alongside record quarterly sales.

The manufacturer of enterprise mobile computers and bar code scanners is raising prices to offset rising memory chip costs. Meanwhile, demand from enterprise customers for on-device artificial intelligence (AI) drives equipment updates. Three key statements from management highlight how the business is executing through component supply challenges.

1. Price Hikes Mitigate $145 Million Memory Cost Headwind

Component price increases for memory chips created a $145 million cost drag for the full year, up from previous estimates of $120 million because customers bought higher volumes of mobile hardware. Management raised mobile computing product prices by approximately 15% in October to offset component costs on a dollar-for-dollar basis going into 2027.

Our full year guide continues to reflect full mitigation of the approximately $145 million memory cost headwind, an increase of $25 million from our prior estimate due to higher sales volumes.
-- Nathan Winters, Chief Financial Officer

2. On-Device Artificial Intelligence Drives Hardware Upgrades

Frontline workers in retail and transportation logistics are upgrading handheld computers to run AI applications directly on the hardware rather than sending data back to cloud servers. That local processing capability is helping the company win enterprise hardware contracts against competitors.

A retail customer in EMEA recently selected Zebra's premium mobile computers over a competitor's offering because of the ability to optimize AI on the device.
-- Bill Burns, Chief Executive Officer

3. Elo Touch Acquisition Synergies Expand Market Coverage

One year after acquiring Elo Touch, management is leveraging the acquisition to expand its presence in the self-service checkout and point-of-sale systems markets. Cross-selling to legacy accounts was described as a key long-term growth driver, though still in its early stages.

Elo Touch continues to be a meaningful growth driver as the industry embraces self-service.
-- Bill Burns, Chief Executive Officer

Looking Ahead

Demand for automated supply chain tracking across retail and healthcare accounts remains strong, and management expects 2027 revenue to expand near the top of its long-term guidance range.

We serve a $35 billion market with substantial runway as customers bring more automation and AI to physical operations.
-- Bill Burns, Chief Executive Officer

Qualifying five memory-component suppliers (with two more expected in 2027) and expanding inventory by $90 million help protect product shipments as global transportation customers prepare for multiyear hardware upgrades.

Together, these strengths give Zebra a durable, profitable growth model with the financial flexibility to create long-term shareholder value.
-- Bill Burns, Chief Executive Officer

The Motley Fool has positions in and recommends Zebra Technologies. The Motley Fool has a disclosure policy.